UB is broke, salaries delayed
Larona Makhaiza | Monday March 25, 2024 05:52
As financial challenges continue to take a toll on the higher institution of education, UB yesterday through a communiqué addressed to all of its employees indicated that the delay in the disbursement of their salaries is due to financial constraints.
The communication, which has allegedly dented employees’ morale, comes about a week left before the end of the month.
“This communication serves to inform you that the university will not be able to pay the March 2024 salaries of employees on time due to financial constraints,” read the communication. Moreover, UB communicated that it is aware of the strain the salary payment delay might evoke.
“We understand the financial stress this might put on you and we deeply regret the inconvenience caused'', said the institution. However, UB highlighted that its employees should be guaranteed that the university is working tirelessly to ensure that their dues are paid in full as the executive management is working overtime to collect its debts from stakeholders.
“Please be assured that the Executive Management has and is actively engaging with the shareholder with a view to receiving the money owed to the university. Further note that all decisions related to salary increases will be made by the university council which is expected to meet sometimes next week,” communicated UB.
In a statement, UB's Director of Public Affairs Dr. Faith Rapuleng-Tuelo confirmed that UB is currently experiencing cashflow challenges that unfortunately led to delayed staff salaries for the month of March 2024. "Members of the public are informed that the Executive Management has and is actively engaging with the shareholder with a view to receiving substantial amount of funds that are to be remitted to the University by end business day on Friday. To that effect, the University further assures its valued stakeholders of its commitment to restore the integrity of the institution.
The University will keep staff and members of the public about any new developments related to this matter," Rapuleng-Tuelo said in a media release.
Contacted for comment, the University of Botswana Staff Union (UBSU) president, Gadzani Mhotsha, expressed disappointment over the communication delayed by UB, more so that they were supposed to get paid yesterday or today. He said he was let down that the institution issued the statement on the 11th hour. “It is shocking especially that pay day is on the day they sent the letter and when employees are expecting to see their pay, they see such communication. The unions will meet to discuss a way forward on this. But hopefully we hope that the university will address the situation with the urgency it deserves,” he said.
The University also revealed that it had received a Directive from the Ministry of Education and Skills Development regarding the Payment of Bonuses by State-Owned Enterprises (SOES). “The payment of performance rewards such as bonuses by State-Owned Enterprises is not automatic and cannot be unilaterally decided by Boards and Executive Management of those entities to the exclusion of the Shareholder, i.e. government. The request for the payment of performance bonuses must be routed through the Ministry of Education and Skills Development for consideration by the Ministry of Finance. The University did submit the request to pay performance bonuses to the Ministry and awaiting feedback”, the Ministry said.
The late payment of salaries of the employees comes after the university had sent out letters of retrenchment notice to its staff. In Parliament last week, the Minister of Education and Skills Development, Dr Douglas Letsholathebe, revealed that as part of a restructuring exercise, the university saw it fit to retrench people. “The exercise arises out of the need to align the organisation structure with its corporate strategy as well as to ensure its cost structure becomes more supportive to the core businesses of the university,” the minister said.
Letsholathebe highlighted that in order to see through that the university’s cost structure becomes more supportive to the core businesses of the institution, it targeted 600 voluntary exits. “I am informed that the restructuring process will end in October 2024 as the university intends to carry out the retrenchment exercise in two phases,” he said. He added: “The first phase will be voluntary - where employees are given an opportunity to apply to be retrenched to be concluded in April 2024. The second phase will be involuntary, and this will only take place if the university considers that not enough employees applied for voluntary retrenchment,” Letsholathebe remarked.